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        Case ID :

        1987 (9) TMI 163 - HC - Customs

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        Import replenishment election under policy terms prevails, but additional replenishment cannot be claimed after full cash assistance. An exporter who had not exercised the earlier policy options could elect under para 209 of the Import Policy 1980-81 to be governed by that policy in toto ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                              Import replenishment election under policy terms prevails, but additional replenishment cannot be claimed after full cash assistance.

                              An exporter who had not exercised the earlier policy options could elect under para 209 of the Import Policy 1980-81 to be governed by that policy in toto for import replenishment, and restrictions drawn from Appendix 3 could not be superimposed where the relevant appendix governing electric fans was subject only to Appendix 4. On that basis, winding wires could be imported without the gauge restriction. By contrast, para 15 of the 1976-77 policy did not permit an exporter to retain full cash assistance and also claim additional replenishment, because the scheme required a corresponding adjustment between the two benefits. The separate claim under para 15 therefore could not be sustained.




                              Issues: (i) Whether an exporter who had not opted for the intermediate policy years was entitled, under para 209 of the Import Policy, 1980-81, to elect to be governed by the 1980-81 policy in toto so as to obtain import replenishment without the restrictions found in Appendix 3. (ii) Whether the petitioner could claim the additional import replenishment under para 15 of the 1976-77 policy after having already obtained full cash assistance on the relevant exports.

                              Issue (i): Whether an exporter who had not opted for the intermediate policy years was entitled, under para 209 of the Import Policy, 1980-81, to elect to be governed by the 1980-81 policy in toto so as to obtain import replenishment without the restrictions found in Appendix 3.

                              Analysis: Para 209 contained two alternatives. The first linked the licence to the relevant period policy, subject to exclusions in certain appendices of the 1980-81 policy. The second expressly allowed the exporter, if he had not exercised the earlier options, to claim both the replenishment rate and the items of import under the 1980-81 policy in toto. Appendix 17, which governed electric fans, was held to be subject only to Appendix 4 and not to Appendix 3. Its item relating to winding wires permitted import of winding wires without any restriction as to gauge, and therefore the restriction introduced with reference to Appendix 3 could not stand.

                              Conclusion: The petitioner was entitled to be governed by the 1980-81 policy in toto for this purpose, and the gauge restriction on winding wires was inapplicable.

                              Issue (ii): Whether the petitioner could claim the additional import replenishment under para 15 of the 1976-77 policy after having already obtained full cash assistance on the relevant exports.

                              Analysis: Para 15 operated on the footing that availing of the additional replenishment would correspondingly reduce the cash assistance. The scheme contemplated an adjustment between the two benefits and did not permit simultaneous enjoyment of full cash assistance and the additional replenishment. Since the petitioner had already taken cash assistance in full and then sought the para 15 benefit, the claim could not be sustained.

                              Conclusion: The claim under para 15 failed.

                              Final Conclusion: The writ petitions succeeded only to the limited extent of securing an unrestricted additional import replenishment licence under the 1980-81 policy for winding wires, while the separate claim based on para 15 of the 1976-77 policy was rejected.

                              Ratio Decidendi: Where an exporter elects to proceed under a later import policy that expressly permits such election, restrictions from an inapplicable banned-items appendix cannot be superimposed if the governing appendix is subject only to a different absolute banned list; conversely, a benefit that is structured to reduce cash assistance cannot be claimed after full cash assistance has already been received.


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